Over 95 per cent of the total investors in the Bangladesh apparel industry are local. Bangladesh has a number of foreign investors in the textile and apparel sectors. The country encourages foreign investments in high value added items, non-traditional apparel items and, in the primary textile industry, especially woven textiles.
Special economic zones will be awarded to countries like UK and China. Meanwhile Bangladesh is also working on decreasing its dependency on imports. There has been significant capacity building in the area of yarn and fabric manufacturing, especially for knitwear items. Denim production capacity has also got a significant boost in the last decade. Almost 50 per cent of the demand for denim fabric by the export-oriented garment industry is being fulfilled by domestic denim mills. Besides, Bangladesh produces almost 100 per cent of the accessories it needs.
However, fiber has to be imported since the country does not grow cotton or petrochemical products. It is also lagging behind in woven fabric production. Though Bangladesh produces for global brands, there are hardly any brands it has developed. The next step is to correct this. Factories are now getting prepared for the next leap forward. In-house design development, presentation of collections to buyers, investments in high value added production capacity are happening in the apparel industry.